Wholesale firm 'used as a vehicle for fraud'

BUSINESS ABANDONED LEAVING DEBTS OF £270,000, HIGH COURT TOLD

- STAFF REPORTER

A BIRMINGHAM-BASED wholesaler has been shut down amid concerns it was a 'vehicle for fraud'.

SAK Wholesale Limited, based on the Alexandra Trading Estate in Handsworth, was wound up at a hearing at the High Court in Manchester on Tuesday, April 29.

The court was told there were concerns about the accuracy of the company’s annual accounts and that profits may have been overstated, enabling the directors to apply for thousands of pounds of goods and services on credit which were never paid for.

The directors failed to co-operate with Insolvency Service investigators, who discovered the company’s registered office in Handsworth had been stripped and abandoned, despite its website still being operational.